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Saturday, May 17, 2025

I May Not Be Smart Enough to Understand This

5/17/25 Yahoo Finance:
"The U.S. Federal Reserve just pulled off something stealthy — over four days last week, without fanfare, the Fed vacuumed up $43.6 billion in U.S. Treasurys. That’s $8.8 billion in long-dated 30-year bonds on May 8 alone, plus another $34.8 billion earlier in the week. Not exactly smong all change."

Buying long bonds by you or I would mean a yield curve inversion.  What does it mean for Uncle Sam?  I think they are betting on yield curve inversion as well.

Another explanation is that buying long bonds reduces need to refinance those bonds when they mature  

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